Letter of intent for funding with Piraeus Bank S.A

Hellenic Dynamics PLC

17 January 2024

 

17 January 2024

Hellenic Dynamics plc

("Hellenic Dynamics" or the "Company")

Letter of intent for funding with Piraeus Bank S.A.

Hellenic Dynamics Plc (LSE: HELD), a medical cannabis cultivator with a dedicated focus on producing tetrahydrocannabinol ("THC") dominant strains of medical cannabis flowers for the fast growing global medical cannabis markets, is pleased to announce that Piraeus Bank S.A ("Piraeus Bank") has conducted a review of Hellenic Dynamics five year business plan and have issued a letter of intent for funding ("Letter") which outlines the support from the bank for the provision of credit facilities on the submission of a detailed business plan, to be submitted on behalf of Hellenic Dynamics by a consultancy firm considered to be acceptable by Piraeus Bank.

Piraeus Bank, headquartered in Athens, is one of Greece's largest banks and one of the most prominent in the agricultural sector. Under the terms of the Letter, Piraeus Bank intends to consider providing Hellenic Dynamics with credit facilities, as follows:

1.    export factoring for working capital;

2.    letters of guarantee in respect of advance payment of certain Greek domestic grants which the Company has applied for; and

3.   loans in respect of the expansion of cultivation buildings at the Company's 195,506 square meter  facility in Northern Greece.

Any support provided by Piraeus Bank would contribute to the advancement of the Company's future developments and objectives, which underpins the Company's business plan and strategy. 

Hellenic is now focusing on working with Piraeus Bank to move forward with this funding opportunity in order to develop and grow its business for the long term benefit of shareholders, and is intending to submit the required documentation to Piraeus Bank's appointed consultancy firm in due course.

Dr Fillipos Papadopoulos, Executive Director of Hellenic Dynamics, commented: "Piraeus Bank has been a  steady supporter of Hellenic and a long term believer in the prospects of the Company and the medical cannabis sector in Greece. The expertise of its team in the agricultural sector allows the bank to have a deep understanding of medical cannabis cultivation and processing and thus facilitates an excellent working relationship. I am very pleased that we are now moving ahead with the various discussions pertaining to funding, the early payment of national grants the Company has applied for and of course the future expansion of our facility under our POD programmes."

The Directors of the Company take responsibility for this announcement.

Enquires: 

Hellenic Dynamics plc	[phone]
Davinder Rai	[e-mail]
Cairn Financial Advisers LLP	[phone]
Emily Staples / Jo Turner
Peterhouse Capital	[phone]
Lucy Williams / Charles Goodfellow

About Hellenic Dynamics plc

 
Founded in 2019, Hellenic Dynamics is specifically focused on the cultivation and supply of THC ("tetrahydrocannabinol") - dominant strains of medical cannabis flowers, destined for the growing global medical cannabis markets. Hellenic Dynamics' core strategy is to develop and operate its 40,000 square metre active cultivation licence from its 195,506 square metre facility located near Thessaloniki in Northern Greece. In full production, Hellenic Dynamics is capable of producing over 54,000 kg of dried flowers per annum.
 
Hellenic Dynamics will take advantage of its relatively low cost base resulting from a comparatively low cost of power, having its own running water supply and the labour rates for skilled and semi-skilled labour in Northern Greece.
 
26 European countries now allow medical cannabis via prescription and the European cannabis market is expected to reach €17.39 billion per annum by 2028. Sales of Hellenic Dynamics' dried THC-dominant cannabis flowers and extracts are initially intended for export into Europe, in addition to other international markets and domestically in Greece.

 
As the first medical cannabis cultivator to obtain a listing on the main market for listed securities of the London Stock Exchange, Hellenic is significantly different to the number of CBD (Cannabidiol) related companies that have appeared over the recent years. Hellenic Dynamics cultivates THC-dominant medical cannabis flowers. THC-dominant medical cannabis products are only available via a medical prescription. Medicinal cannabis has been approved for use both in the United Kingdom and Germany, plus 24 other European countries, for conditions including but not limited to chronic pain, intractable chemotherapy-related nausea, anxiety, insomnia, Tourette's syndrome, substance use disorder, multiple sclerosis, IBS, spinal cord treatment, lack of appetite due to HIV/AIDS, cachexia, anorexia and glaucoma.

For further information please visit our website www.hellenicdynamics.com  

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

END